Service tax on developer

This query is : Resolved

CA. SRIKANTHA RAO T (Querist)
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06 June 2011 Can a developer undertaking construction work through a contractor but having a construction agreement with his clients, take the view that he is not liable to service tax at all prior to 01.07.2010 as he physically does not take the construction work himself?

If so, would this be a safe view at all?

Can a similar view be taken under VAT?

annapurna

annapurna (Expert)
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06 June 2011 No, similar view cannot be taken under VAT and the definition of sale includes the concept of deemed sale under the VAT law wherein the transfer of property in goods in the execution of works contract will be leviable. The state vat law have to be analysed because some state have different works contract tax Act And in some state the definition of sale includes the works contract. The charge ability under service tax law and VAT law will differ as being central levy and State levy with their own provisions , Rules and Notifications